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Important Notices!

Individual & Corporate Income Tax

Instructions For Electronic Annual A-3 Withholding Tax Returns

Withholding Tax

Electronic Filing of Withholding Tax and Annual Reconciliation of Alabama Income Tax Withheld

Filing of Form A-3 and Forms W-2 and/or 1099

Electronic Filing of wage and tax information is required if submitting 25 or more W-2 and/or 1099 forms, if Alabama income tax was withheld from the 1099 distribution. The due date for filing wage and tax information is the last day of January.

Filing Form A-3, Annual Reconciliation of Alabama Income Tax Withheld, is a two-step process: submission of employee W-2 information and/or 1099s (with Alabama income tax withheld), and submission of Form A-3, the annual reconciliation of the monthly/quarterly taxes withheld and remitted to the Department.

If you do not have software that will create an acceptable file to upload, the Department has provided an Excel program that will create a W2REPORT.txt file that can be uploaded through MAT. Click here for information on using the spreadsheet provided by the Department to create your W-2 file.

Step 1 – Submission of W-2 and/or 1099 Statements: Taxpayers can manually enter their wage and tax information or they can upload a file containing their information. Only text files are acceptable and the filename must have a .txt extension. The format of this file is specified by Alabama Form 10. Only 1099’s with Alabama income tax withheld should be included in the file.

1. My Alabama Taxes (MAT) allows filers to either enter wage and tax information manually or import a file. MAT is not limited to the number of statements that can be manually keyed.

To file through My Alabama Taxes, select the Return List for December and then click on File Now for Form A3 and Forms W2. On the next page click the Import Wage and Tax link and select the file to upload. or click Enter/Edit Wage and Tax Information to manually enter the wage and tax information. All errors must be corrected before continuing to Step 2.

Note:  If you cannot complete entering your information and want to save it for a later time, you can click the Save and Finish Later button.  When you return, click Finish Now in the left panel.



Step 2 – Completion of the A-3 Annual Reconciliation:

Upon successfully entering or uploading the W-2 and/or 1099 information, you must complete Form A-3 online. All fields on Form A-3 are required and must be entered on the form. After the information is entered, click Calculate in the Paperless Filing system or OK in My Alabama Taxes. The system will compare the number of employee wage statements entered on Form A-3 to the number of W-2 and/or 1099 statements filed and the amount reported on Block 2 will be compared to the sum of the State Income Tax Withheld on the W-2 and/or 1099 statements filed. Form A-3 will not be accepted if these amounts do not agree. Click Submit to receive a confirmation number and print the confirmation page for your record. Please note that your information will not be received processed until you have received a confirmation number.